Special Circumstances, Special Loans – What Does It Take to Be a Successful Entrepreneur?

Special Circumstances, Special Loans – What Does It Take to Be a Successful Entrepreneur?
by Leslie Wilkins

The messages that we hear over and over from the leaders in the business development, marketing and management world (and the most highly regarded professors in business school) are:

Be creative!

Take a risk!

Be innovative!

Pursue your dreams!

Be single-minded!

It’s great advice for owners and managers, builders, and investors.

There’s only one issue . . .

Banks are naturally risk-averse. And the Small Business Administration can be risk-averse as well.

What frightens banks and the SBA? Newness and innovation.

Does your project include newness like one of these categories?

• A brand new idea, not even franchised yet?
• A new franchise or a new brand or a new division within an existing franchise
• A new location
• New construction
• Repurposing of a previous building for a new business

Don’t be afraid to innovate.

But do be cautious about going out on your own to shop for financing. There are so many financial institutions in the marketplace. You could waste hours and hours of your time trying to make a match, filling out forms, submitting personal and business information, only to be rejected because this or that bank really has no interest in your innovation.

Your time is better spent telling the GRP team about your dream project once and then letting us do the legwork for you.

Our process is transparent:

  1. We evaluate your idea and give you feedback.
  2. We’ll tell you if we think your project is feasible and if the timing is right.
  3. We’ll also tell you if we think you need to make alterations before proceeding. We do this because we represent you and not the lenders.
  4. We’ll determine together what the most important financing elements are to you, including rates, length of payback time, minimizing closing costs, extracting working capital or speed of closing.
  5. We will decide together if you should seek traditional financing or whether the GRP Capital Debt fund is the better option.
  6. If we are seeking traditional funding on your behalf, we will help package your project and present it to competing lenders, based upon who we think will offer the best path to closing an acceptable loan.
  7. Once a lender is approved by you, we will help you gather and submit all of the necessary materials and guide you all the way to closing.

Quality Inn – Crystal River, Florida was a promising property for our clients. Our clients consisted of two partners both of whom have a long history of hospitality ownership and management. Our clients had their eye on this property, as it was posting good revenues. In fact, the property became a haven for Florida residents during Hurricane Irma as the facility had electricity and was conveniently location. The current owner of the hotel was selling as he was not able to be onsite as much as was needed, due to owning several other properties, some that were a far distance.

Our clients saw a stable property that would benefit from more onsite management and some needed renovations. Our clients, one of whom was relocating to Crystal River, negotiated with the seller, successfully including renovations as a pre-condition of the sale while planning some working capital for continued facelifts upon purchase.

SBA funding was a good match for our clients. Their property was new to them, but they were proven managers and the loan was the right amount of risk for our lender, particularly with SBA backing.

 

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital MarketsSmall Business FinancingConstruction LendingGRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.